Earth to President Obama: there isn't going to be a next time. This time was enough to git 'er done. Wall Street - in particular the biggest "banks" - packaged up and sold enough swindles to unwind 2500 years of western civilization. You simply cannot imagine the amount of bad financial paper out there right now in every vault and portfolio on the planet. Enough, really, to sink any company even pretending to trade in things more abstract than a mud brick or an hour of labor. What's more, the cross-collateralized obligations between them are so vast and intricate that all the standing timber in North America could not be fashioned into enough pick-up sticks to represent the hideous death-dealing tangle of frauds waiting for the wing-beat of a single black swan to come crashing down.
Go out and get a copy of Michael Lewis's recent book The Big Short for a close-up view on one micro-corner of the investment world. You will discover that the people fabricating things like synthetic collateralized debt obligations (CDOs) had no idea what the fuck they were doing - besides deliberately creating documents that nobody would ever understand, that would never be unraveled by teams of law clerks or secret words or magic incantations or prayers to some dark hirsute deity, and were guaranteed to place in jeopardy every operation of the world economy above the barter level. Sorry to invoke the hoary old metaphor about the horse being out of the barn - but the larger problem is what the horse left behind in a great steaming mound clear up to the rafters. There was nothing to understand in all this crap, except that betting against it was a good idea, and then only for those who placed the earliest bets - because everybody else is going to get just as screwed as those who stuffed their vaults and portfolios with Triple-A rated horseshit.
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